InvestorQ : How much of inflow do you see into India now that MSCI has added new stocks to the index?
rhea Babu made post

How much of inflow do you see into India now that MSCI has added new stocks to the index?

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Riya Dwivedi answered.
1 month ago
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It is estimated that the MSCI revamp would result in Indian markets getting inflows of $350 million from FPIs as passive investors adjust their portfolios to reflect the new MSCI weightages and combinations. MSCI has removed 1 stock but it has included 6 stocks in the MSCI index from the list of Indian stocks.

Since most passive funds like index funds and index ETFs globally track the MSCI indices for global investment allocation, inclusion in the index is an automatic reason for fresh FPI flows into that particular stock. The 6 stocks that will be added by the MSCI include Adani Enterprises, Adani Total Gas, Adani Transmission, BEL, Cholamandalam and SBI Cards. However, Zee Entertainment will be one stock that will be removed from the MSCI index.

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